The insurance industry today faces two key challenges. The first is finding a way to deal with fraud. According to conservative estimates, fraud costs the industry—and consumers—US$80 billion annually, equivalent to the revenues of a Fortune 500 company. The second challenge is finding new avenues for growth in an industry that has been fundamentally transformed in recent years. Caught between deregulation, which has brought new competition, and entirely new regulatory and compliance requirements, insurers are finding they must increase their "wallet-share" if they are to grow the business.
While these two challenges may seem unrelated, in fact they share a common solution: better use of data. The key to stopping fraud is identifying trends and people in order to stop the fraud before it starts. The key to increasing wallet share is having a single view of the customer to support up-selling and cross-selling, even across multiple distribution channels. This requires accurate, up-to-date information that is readily available across the extended enterprise. Unfortunately, many insurers maintain their information in silos: policy systems, claims systems, and billing systems supporting different lines of business and different channels.
In this environment, a data quality solution should be a basic element of doing business. A DQ solution based on Ataccama technology will help eliminate duplicates and increase the accuracy of data across systems. More to the point, master data management offers a clear solution to each of these insurance challenges. In particular, Ataccama's Master Data Center can serve as the core platform for customer processes and segmentation while enabling the creation of unique data for trend predictions, irregularity detection, risks and more. Of course, Ataccama's products also provide support for meeting today's evolving compliance requirements.
In order to compete in a changing marketplace, reduce fraud and meet regulatory requirements, insurers need to consolidate data from different product lines and different sales channels to create accurate, authoritative, and up-to-date information. Some industry specific applications include:
- Creating a unified party view
- Supporting a customer-oriented approach
- Introducing single product catalog
- Supporting distribution channels and field workers with up-to-date data while they work mostly off-line
- Supporting complicated and multi-channel distribution networks; a value based approach to single distribution channel and the members
- Working on a house holding basis
- Providing management, stakeholders and regulatory bodies with the required, timely and correct data
- Preventing fraud
- Losses/claims prediction and correct reserving based
- Introduce, define, and maintain corporate-wide terms
Your Real World Example
In order to meet evolving fraud prevention and marketing requirements, a major insurer implemented a comprehensive master data management/data quality project. Based on Ataccama Data Quality Center, the project provides 12 systems with batch and online cleansing and match/merge services covering more than 100 million records.
- Provides support for both fraud prevention and marketing activities
- Expanded master database contains more than 100 million records
- Provides cleansing and match/merge functionality as services to 12 systems in both batch and online mode
- 30 million parties and 50 million addresses
- Hardware: 4 Xeon CPU, 8 GB RAM, Windows 64bit
- Night batch – 8 hours
- Online response – 1 second